Synagro Announces Favorable Settlement of New Hampshire Litigation

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Synagro Announces Favorable Settlement of New Hampshire Litigation

TEXAS, HOUSTON, Jan. 10 -/E-Wire/-- Synagro Technologies, Inc. (NASDAQ Small Cap: SYGR), a full service provider of residuals management services, today announced that it reached a favorable settlement of a lawsuit in New Hampshire that alleged the death of an individual resulted from the land application of biosolids by a company Synagro later acquired.

As part of the settlement, plaintiffs stated specifically that the science they developed to pursue the case did not prove that biosolids applied on a farm field caused or contributed to the death, nor did it cause any of the alleged injuries or illnesses of other residents in the area. The suit was brought in February 1999 by the estate of Shayne Conner, who died suddenly in his sleep in November 1995 approximately one month after biosolids were applied as fertilizer to a field near his neighborhood. The case arose before Synagro acquired the business against which the suit was filed.

Throughout the suit, Synagro maintained, based on well-accepted independent scientific research and voluminous expert opinions, that there was no evidence that linked the death to biosolids land applied on farm fields. Synagro repeatedly denied all of the claims alleged by the plaintiffs and their primary expert, Dr. David Lewis. Synagro pointed out that, in direct contradiction to the plaintiffs' experts, the Acting Chief Medical Examiner of New Hampshire who conducted Mr. Conner's autopsy concluded that "Mr. Conner's death was not the result of possible environmental conditions created by the use of such fertilizer, nor did such materials contribute to his death. It is important to note that other members of his family who resided with him at the same residence, including his brother and mother, were completely unaffected by environmental conditions on the night of Shayne Conner's death." Two independent pathologists who together have performed more than 15,000 autopsies during their careers also concluded the death was unrelated to biosolids.

The specific terms of the settlement agreement are confidential and are not being disclosed. The Company, however, indicated that the settlement would have no significant impact on the Company's earnings or financial position.

"This is a very good result for our Company and the residuals management industry overall, and it was in the best interest of both parties to bring the matter to a close," said Ross M. Patten, Synagro's Chairman and Chief Executive Officer. "While the young man's death was tragic, the land application of biosolids had nothing to do with it. We know that the land application of treated biosolids is safe, and we were pursuing a vigorous defense of our Company and the biosolids industry. This settlement provided a means to end a lawsuit that had no clear end in sight, avoid the expense of protracted litigation, and resolve an on-going distraction to our management team."

Mr. Patten added, "Most important, we want the public to know this case never had a sound scientific or medical basis. We were able to establish this through the sworn testimony of the plaintiffs' own expert, Dr. David Lewis, on whose novel theories the case was largely based. In the end, even the plaintiffs â the very family members who brought the suit after suffering the loss of their son -- agreed no case could be made."

In a statement incorporated into the settlement agreement, Joanne Marshall, mother of the deceased, and her husband, Thomas, stated: "The science developed in this case did not prove that the sewage sludge Synagro's predecessor applied on the Hughes Field in Greenland, New Hampshire, in October 1995 caused or contributed to Shayne Conner's death, nor did the science prove that the sewage sludge caused any of the injuries or illnesses the other residents of Tuttle Lane allegedly suffered."

Mr. Patten also noted that, "Biosolids recycling has been practiced safely in the United States for more than 150 years and has never been shown to cause illness or public health problems when handled within the federal regulatory framework, even to those closely exposed to it in their daily work in wastewater treatment plants across the country. And that remains true today. Biosolids recycling has been scientifically established as beneficial to agriculture and provides an environmentally sound means to manage the nation's treated biosolids. It has been highly studied and is tightly regulated by the U.S. Environmental Protection Agency under the Clean Water Act. Practiced in accordance with federal regulations, it is safe and beneficial."

Synagro is focused exclusively on organic residuals management services, and has operations in 38 states located throughout the country. The Company has positioned itself as the leading national provider of organic residuals management services to municipal, industrial, and agricultural generators throughout North America.

This press release contains certain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, which involve known and unknown risks, uncertainties or other factors not under the Company's control which may cause the actual results, performance or achievement of the Company to be materially different from the results, performance or other expectations implied by these forward-looking statements. These factors include, but are not limited to (1) unseasonable weather, (2) changes in government regulations, and (3) the ability to access debt and equity financing when needed. Other factors are discussed in the Company's periodic filings with the Securities and Exchange Commission.

Synagro Technologies, Inc

http://www.synagro.com

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